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Show I , mm : whs I I , , - THE ROBOT REVOLUTION The use of fixed-type mechanical ' robots first occurred during the early '1960s. Now. with the advent of microeletronics and the microcomputer, micro-computer, industrial robots have become intelligent and thus fully automated. Their application in the automotive, aerospace, appliance, metalworking, glass, rubber, and machinery industries is growing at a rapid pace. The robots are able to perform a considerable variety of tasks such as welding, painting, machining, cutting, assembling, and machine loading. Here in the United States, the average annual increase in productivity has been substantially below that witnessed in Japan and West Germany over the last couple of decades. Also, shortages of skilled labor and the reduction of product life cycles (owing to the need to redesign products for greater energy efficienty) are adding to America's dilemma in trying to compete on a worldwide basis. Consequently, U.S. manufacturers are now being compelled to invest in more sophisticated automation technology. The Research Department of Babson's Reports believes that the expanding use of automated numerical control machines computer-aided design and manufacturing, programable controllers, and industrial in-dustrial robots will help us to improve our rate of productivity in order to meet the challenge of foreign producers in the worldwide marketplace. M ARKET GROWTH EXPLODING Machine tool manufacturers, producers of solid-state electronic components, makers of computers and peripheral equipment as well as the most recent entrants robots are all sharing in the growing market contributing con-tributing to factory automation. The technology is broken down into four categories. First, the market for CAD-CAM systems (computer-aided design and manufacturing) is expected to broaden at an annual rate of 35 percent in the course of the next five years. From about $200 million in 1979 sales, these systems are expected to reach between $1.5 billion and $2 0 billion by 1985. Programable controllers represent a market of about $:too million rhy the end of 1980) and forecasters are looking for $1 billion by the middle of the 1980s. The growth rate for these devices has been near 50 percent for most of the 1970s. U S annual robot sales have been increasing at a rate of 35 percent and could quadruple by 1985. In 1979 the U.S. market amounted to about $40 million and could exceed $700 million by 1990. Finally, installed computer systems in manufacturing have at present a total value of $13 billion and are projected to $20 billion by 1983 di i.ioi r it i k ii' i , More a technology than an industry, automation includes a great many different types of companies cutting across a variety of business categories. These cover such areas as machine tool firms, of which the leading participant is Cincinnati Milacron (numerical controls and robots). Monarch Machine Tool, Ex-Cell-O, and Bendix loom large in numerical controls. Condec's Unimation division and Copperweld are also producing robots. McDonnell Douglas is important in CAD-CAM as is Computervision. Such companies as Gould, G.E., Texas Instruments, In-struments, and Westinghouse are in the fast-growing programable controllers, and Digital Equipment Specializes in supplying minicomputers for numerical control functions. KM OMMKl)TIOS The Research Department of Rab-son's Rab-son's Reports is of the opinion that there will be pronounced growth in industrial automation over the next ten years. Therefore, we are at this time advising purchase of General Electric, Texas Instruments, and Westinghouse Electric (all are traded on the New York Stock Exchange) for investor participation in the burgeoning technology. |